Morgan Stanley has confirmed in a regulatory filing that John Mack will give up the guarantee of receiving at least $25m (â¬21m) for his first full year as chief executive and chairman.

The filing with the US Securities and Exchange Commission said the amendments to Mack's employment contract "eliminate the guaranteed annual minimum total compensation (comprised of annual base salary, annual bonus and long-term incentive compensation) that Mack was granted pursuant to the original agreement."

In July he pledged to give up his guarantees and link his pay to performance. In a letter to employees he said he had amended his pay deal after protests at lucrative pay-offs awarded to his predecessor Philip Purcell, who was given a $44m severance payment.

Stephen Crawford, co-president of Morgan Stanley, collected $32m when he resigned from the bank in July. He had been promised $32m if he resigned before August 3 and guaranteed a minimum $16m pay package a year for two years if he had stayed.

The amended contract said that Mack would not receive an annual base salary less than that paid to Purcell. During his employment period, the base salary "shall be reviewed for increase only (and once increased shall never be decreased)", according to the filing.

Each year Mack will be eligible to receive an annual bonus "based upon performance targets" and be eligible for long-term incentive compensation. He will also receive a special one-time grant of 500,000 restricted stock units which is not considered part of his total compensation. Morgan Stanley shares were at $52.20 in late trading Thursday.

In third quarter results this week the bank's profits slumped 83% after it took a $1bn charge from the planned sale of its aircraft financing business and $178m in compensation costs for severance payments and new hires.